Mandatory Disclosure of Overseas Assets

Posted @ July 20, 2012, 9:46 pm under (Income Tax Updates)

The Central Board of Direct Taxes (CBDT) recently notified the new tax return forms for the tax year 2011-12 or assessment year 2012-13, mandating disclosure of foreign assets. In the tax return forms called ITR 2/3, a new section called ‘FA’ (Foreign Assets) has been introduced to disclose foreign assets.

The notification stipulates that if an individual’s taxable income exceeds Rs 1 million and domestic and expatriate resident individuals possessing assets overseas, need to file their returns electronically.

Having assets overseas is sufficient for a resident individual to fall under the compulsion of filing income tax returns with full disclosure of the assets in question. Generation of income in India is not the criteria.